by Web Editor | Sep 12, 2016 | News
Like much of the industry, engineered wood producers are still navigating a fickle recovery in which builders are challenged by supply constraints, tight lending, and hard-to-come-by lots. Though the market is emerging from the recession, it’s still on the slow side.
“The demand is there for 1.5 million housing units. We’re not meeting that,” says Joe Elling, director of market research for APA–The Engineered Wood Association. Production is up on a year-ago basis, “but starts could be stronger if some of these supply-side constraints were not as binding,” Elling says. “I anticipate a modest improvement in the second half of the year, but it’s still going to be agonizingly slow going forward.”
For engineered lumber manufacturers and the dealers who sell their products, the slow recovery presents both challenges and opportunities. Along with the obvious—a slower return to at-peak sales—the ongoing labor shortages have created an even stronger need for product education. At the same time, those labor constraints provide even more motivation toward using engineered products that boost efficiencies and cut back on waste.
Overall, the industry has seen a positive boost in public opinion toward wood products, be they engineered or otherwise, as high-profile projects showcase their capabilities, beauty, and warmth.
“One of the biggest things in the forest products industry today that affects EWP the most is the general feeling in the world that wood is good,” says Mike McCollum, director of engineered wood business at Roseburg. “Wood is now the first choice in everybody’s eyes. Its sustainability, its efficiencies, its workability, its natural warmth, along with the fact that it is easy to design with and easy to build with…everyone has been awakened to this idea that wood is good. Then, when you take it to the next step, everything that engineered wood brings to the construction market is highlighted even more.”
From LBM Journal: https://www.lbmjournal.com/in-depth-engineered-lumber-2/
by Web Editor | Jan 25, 2016 | News
Demand For Engineered Wood Products To Grow Through 2020
googletag.cmd.push(function() { googletag.display('div-gpt-ad-1548376180744-0'); });
Engineered wood product output will grow between 25% and 33% by 2020, according to the Fall 2015 Forecast by APA – The Engineered Wood Association. That should bode well for LBM dealers as the housing market continues its gradual recovery.
APA’s 2015-2020 Market Outlook for structural panels and engineered wood products forecasts that demand for North American-made structural panels will increase 21% by 2020, from 31.5 billion square feet to 38 billion, largely in response the increase in housing starts to 1.5 million units by the end of the decade.
APA’s forecast for an uptick in demand for structural panels and engineered wood doesn’t surprise J.D. Saunders, the 2014-2015 chairman of the National Lumber and Building Material Dealers Association (NLBMDA) and vice president of Economy Lumber in Campbell, Calif. “We’ve already experienced an increase in demand, and part of that is attributable to the recovery of the housing market,” he says.
In fact, APA’s Market Outlook notes that although the U.S. homeownership rate is expected to trend lower through 2020 as interest rates rise, the improving economy could push household growth as high as 1.3 million per year over the next three to five years.
Several factors are dampening the potential for stronger growth in homebuilding. Young would-be homeowners are delaying marriage as they pay off historically high levels of student debt and their projected incomes are unlikely to keep pace with the rise in mortgage payments as home prices and interest rates rise. In addition, first-time home-buyers continue to struggle to meet strict mortgage lending standards to qualify for home loans. Many of the households they form in the near future are likely to be living in rented apartments, as described in the APA report.
From LBM Journal: lbmjournal.com.
RELATED ARTICLES
2020 APA SAFETY AND HEALTH AWARD WINNERS ANNOUNCED
APA SELECTS NEW PRESIDENT
APA NAMES NEW DIRECTOR OF QUALITY SERVICES
googletag.cmd.push(function() { googletag.display('div-gpt-ad-1548375988914-0'); });
googletag.cmd.push(function() { googletag.display('div-gpt-ad-1589916740199-0'); });
googletag.cmd.push(function() { googletag.display('div-gpt-ad-1548376916922-0'); });
googletag.cmd.push(function() { googletag.display('div-gpt-ad-1548376961890-0'); });
googletag.cmd.push(function() { googletag.display('div-gpt-ad-1548377005333-0'); });
The monthly Panel World Industry Newsletter reaches over 3,000 who represent primary panel production operations.
Panel World is delivered six times per year to North American and international professionals, who represent primary panel production operations. Subscriptions are FREE to qualified individuals.
Complete the online form so we can direct you to the appropriate Sales Representative. Contact us today!
by Web Editor | Jan 22, 2016 | News
The U.S. Census Bureau & the Department of Housing & Urban Development released its December and total 2015 statistics on new residential starts in the U.S. There were no real surprises with the data, but predicting U.S. housing starts has been virtually impossible for analysts and economists.
WOOD MARKETS has conducted its own U.S. housing forecasts since 2007 when about that time, consensus forecasts became wildly inaccurate. Since then, WOOD MARKETS has repeatedly highlighted that a structural change has been occurring in the U.S. housing market and the use of traditional economic models will not work until much later in the cycle. As a result, WOOD MARKETS own housing forecasts have been decidedly more conservative as compared to all other economists’ forecasts. Since 2007, our housing and supply/demand forecasts have been much closer to the actual results as compared to the many dozens of professional economists and modelers.
The key take-away message is this: The Consensus forecasts continue to be too high – with some being way off the charts. For those that use housing forecasts in their business plans, using the consensus forecasts in 2014 of 770,000 single family housing starts would have resulted in forecasts of almost 2 billion board feet of extra lumber demand. This type of forecasted demand increase would have suggested a much tighter supply and demand balance, where higher lumber price forecasts could be another one of the wrong predictions.
And WOOD MARKETS’ U.S. housing forecast for 2016 (in WOOD MARKETS 2016) is once again lower than the Consensus forecast – no surprise here. And our consultants have a decidedly conservative tone to North America and Chinese demand as well as prices for 2016 – all predicted before any signs of the current global economic volatility started.
From International Wood Markets: https://www.woodmarkets.com/forecasters-struggle-for-accuracy-as-u-s-housing-starts-grew-steadily-in-2015/
by Web Editor | Jan 20, 2016 | News
Norbord Inc. recently announced that the Quebec Minister of Forests, Wildlife and Parks has terminated the wood license associated with its curtailed Val-d’Or, Quebec OSB mill. Production at the Val-d’Or mill was indefinitely suspended in 2012 following persistently weak North American housing market conditions and lower demand for OSB. This development is not expected to have any impact on the company’s financial results.
“This is disappointing news, but in the bigger picture, we firmly believe that our Val-d’Or mill is the best alternative for the aspen pulpwood in that region,” said Peter Wijnbergen, Norbord’s President and CEO. “Unfortunately, market conditions do not yet justify a restart at Val-d’Or, but we are exploring options for the mill and are committed to a restart once market conditions are supportive. The Ministry has confirmed we can reapply for a wood license when we are ready to restart the mill.”
Norbord is the world’s largest OSB producer and continues to operate in the Abitibi region at its La Sarre, Quebec OSB mill. Since 2012, the company has invested and committed capital in excess of US$35 million to optimize that mill’s capacity and ensure its long-term competitiveness.
From Canadian Newswire: https://www.newswire.ca/news-releases/norbord-provides-update-on-val-dor-quebec-osb-mill-565685951.html
by Web Editor | Mar 2, 2015 | News
Composite panel consumption is projected to grow in North America through 2016, buoyed in part by the strengthening of the U.S. housing market and positive indicators of improvement in the furniture and related industries. Figures from Resource Information Systems, Inc. (RISI) project particleboard consumption to rise 10 percent in 2015, to 3.29 billion square feet, and grow 11 percent in 2016, to 3.64 billion square feet. Similarly, MDF is projected to hit 2.97 billion square feet in 2015, a rise of 9 percent, and jump to 3.28 billion square feet in 2016, up 10 percent.
Panel producers are gearing up, with already two companies announcing multi-million plant investments this year.
Uniboard announced Feb. 5 that it will invest more than $53 million at its Val-d’Or particleboard and thermally fused laminate (TFL) facility as part of its plan to increase productivity and upgrade key production areas. The company produces particleboard, MDF and TFL from mills in Val-d’Or, Sayabec, Mont-Laurier and Laval, Canada.
Uniboard President and CEO James N. Hogg said the project will enable the company to enhance its engineered wood and value-added product offerings. “Over recent years, Uniboard has invested heavily into product development, launching new color collections including North America’s first registered embossed thermofused laminate panels as well as expanding our successful NU Green range of low and no-formaldehyde products,” he added.
This followed the Jan. 26 news from Arauco that it will invest $30 million to grow the particleboard and TFL capacity at its mill in Bennettsville, SC. The new technology is expected to be in place by the fourth quarter. Arauco said increased dryer capacity will help it to improve its particleboard production by 60 million ft2, on a 3/4-inch basis annually. Arauco also will add a high-tech fast-cycle press for TFL production.
From Woodworking Network: https://www.woodworkingnetwork.com/wood/panel-supply/Composite-Panel-Market-Grows-Consumption-to-Hit-10-in-2015-294396371.html#sthash.7iZYxiAW.dpbs
